Amid Progressive policy terminations, Florida GOP leaders say insurance market is ‘improving’

TALLAHASSEE, Fla. – Amidst what has been termed a “property insurance crisis” in Florida, numerous homeowners in the region have reported receiving notices of policy termination from Progressive, while Florida Republican leaders say the state’s insurance market is “improving.”

Progressive is a leading property insurance provider nationwide. It is issuing over 100,000 non-renewal notices to homeowners after it announced a partnership with Loggerhead Insurance to shift some property insurance policies last year.

Last year, a Progressive spokesperson told Florida’s Voice the company has no plans to leave the state and Florida remains “an important part of our Progressive Home business.”

Back then, the company said it had plans for a two-year proposal to transition 115,000 policies, 45% of which are non-homeowner policies, to Loggerhead Insurance through a competitive renewal offer.

In 2023, Florida homeowners bore the highest burden of home insurance expenses, facing an average yearly premium of $10,996, which is $8,619 more than the U.S. average, according to data from Insurify.

Anticipating further financial strain, Insurify forecasts a 7% surge in costs by the end of 2024 in Florida, projecting a new average of $11,759.

Over the two-year period from 2021 to 2023, there was a notable uptick in the average annual rate in the U.S., surging by 19.8% from $1,984 to $2,377. Insurify predicted the country’s annual projected rate in 2024 will rise by 6% to $2,522.

Florida Senate Democratic candidate for District 17 Carlos Guillermo Smith said on X that while Gov. Ron DeSantis “films videos feigning outrage over Title IX protections for LGBTQ students, 100,000 more Florida homeowners are pushed off property insurance policies by another unaccountable insurance company.”

Florida Chief Financial Officer Jimmy Patronis’ office told Florida’s Voice if a policyholder receives a non-renewal letter from Progressive, they should contact their insurance agent to discuss coverage options.

Individuals can also call the Florida Insurance Consumer Helpline at 1-877-MY-FL-CFO to speak to a specialist who can provide insurance assistance.

Patronis led a “Keeping Policyholder First Insurance Roundtable” in Clearwater Thursday with state legislators as well as business and community leaders to highlight the successes made to improve Florida’s property insurance market.

The chief financial officer said Florida’s insurance market is “improving day by day.”

“It’s no secret that insurance challenges have become a nationwide crisis, driving up costs across the country as inflation, natural disasters, litigation, and fraud have caused a perfect storm for policyholders,” Patronis said. “Today, I was joined by leaders from across our state to show how Florida has met these challenges head on and worked to keep policyholders first.”

One highlight from the roundtable is that eight new property insurance companies have entered the Florida market over the past year. Patronis said consumers are beginning to move out of Citizens Property Insurance and back into the private markets, which he said creates “healthy competition and ultimately stabilizes the property insurance market for all Floridians.”

“I tell people all the time that it’s like turning a giant cruise ship, it takes time to pass the needed reforms to turn the industry around but I’m thankful that we have so many great leaders in our state manning the helm,” Patronis said.

Patronis also offered insight into the latest developments within the My Safe Florida Home Program, highlighting recent enhancements aimed at bolstering assistance for seniors and low-income homeowners. 

During the roundtable discussion, the chief financial officer emphasized the importance of policyholders leveraging home hardening initiatives while urging individuals wary of fraudulent activities to promptly report any suspicions via FraudFreeFlorida.com.

“The program has been improved this year to better serve seniors and low-income homeowners with prioritized grant applications windows opening in July,” Patronis said. “Eventually, Florida will be impacted by another major hurricane, and this home hardening program remains the best way to lower your insurance premiums while protecting your biggest investment – your home.”

Patronis said “unfortunately” something leaders in the state “cannot change is the inflation crisis created by Washington.”

“In this current climate, it costs as much to put groceries on the table as it does to replace your roof,” he said. “Everything costs more, and that includes insurance. While we wait on DC to get their act together, I’m thankful that leaders in Florida have leaned forward on this issue and are looking out for policyholders at every step of the way.”

During the roundtable, Sen. Jay Collins, R-Tampa, said the state’s recent reforms are addressing the “root causes of the insurance crisis.”

“Like CFO Patronis has said, Florida is meeting this challenge head on and starting to right the ship,” Collins said. “I’ll continue to work with my colleagues in the Legislature to ensure Florida policyholders are first and insurance costs are reined in.”

Sen. Jim Boyd, R-Bradenton, spoke to Florida’s Voice about the legislature’s efforts to implement property insurance reform in Florida, as a growing number of citizens consider the issue to be top of mind.

“The property insurance reform, coupled with tort reform, is going to make a massive difference in homeowners’ premium costs over the foreseeable future,” he said.

“The reality is is that most people haven’t seen it in their rate reductions, or most of it, because it takes a year and a half to 18 months for those changes to filter through the rate making process,” he added.